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Halifax/ Bank of Scotland: a guide to account changes.
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the Reward Current Account has had these changes in place since launch in February.
So for people like me who currently have a HICA who funds the account with £1K each month and don't touch the overdraft facility (arranged or otherwise) would make sense to change to their Reward account?
And could have done so from Feb 2009, receiving £5 interest / reward a month?0 -
Currently have a HICA, which i will now be debiting with over £1000 per month - question is when I ask them to switch from the HICA will they do it without fuss?0
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There may be a half-hearted attempt to sell you the benefits of the 'ultimate reward' account which costs £12.50 per month, but just make it clear you do not want that and they will soon desist. All the account details remain the same and you can continue to use your existing card and cheque book. Eventually Halifax will send you a replacement debit card.0
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So for people like me who currently have a HICA who funds the account with £1K each month and don't touch the overdraft facility (arranged or otherwise) would make sense to change to their Reward account?
And could have done so from Feb 2009, receiving £5 interest / reward a month?
Yes and yes. I would suggesting contacting them today and asking for the account to be changed over. There is no reason (if you do not use an overdraft) why you shouldn't start benefiting from the £5 Reward now.dingdong1984 wrote: »question is when I ask them to switch from the HICA will they do it without fuss?
As apt has said, they may try to sell you the Ultimate Reward Current Account which costs £12.50. Just stick to your guns and ask for the Reward Current Account, in my experience HBOS are not a hard sell, so I would say it should be relatively fuss free. Just to clarify on another point apt has made, they will not re-issue a new card until yours naturally expires, or is reported lost or stolen.Anything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.0 -
An advisor on the phone just told me that as of December 2009 - anyone with 3 reward accounts (or any 3 current accounts) in SOLE names will be asked/told to close one of them and are only allowed to have a maximum of 2 current accounts.
I asked where it was in Terms and Conditions and he was not able to point me in the right direction.
Can anyone confirm if this is to be the case or is it the usual misinformation you expect from this outfit?0 -
I visited my local Halifax Branch yesterday to clarify the changes to my High Interest Current Account. These are the facts:
1. No interest will be paid on credit balances
2. If you use an O/d facility and you go into overdraft for any amount - (even 1p) you will be charged £1.00 per day up to £2500 and £2 per day over £2500.
3. If you use an unarranged overdraft you will be charged £5 per day.
It is very easy to drift into a small o/d particularly if your salary is paid over a weekend at the end of the month and your cheque is not cleared in time, or if you pay a number of debit orders, which most people do - Energy and water bills, Telephone, TV, Council Tax, Sky TV, mobiles etc. etc.
It is therefore most important that one checks ones bank statements frequently to ensure that one does not drift into a minor overdraft.
In my view HBOS have not introduced these measures to simplify the management of overdraft fees but to swell its coffers at the cost of the unwary particularly those that do not have the facility of the internet to hand. These include the most vunerable of our society - the aged and the poor.
One is buffered to a certain extent by the £5 paid monthly into a 'Rewards' account, but it will be very quickly eaten away.
The best thing to do is change banks!!!0 -
Can anyone confirm if this is to be the case or is it the usual misinformation you expect from this outfit?
As the guide explains, there are currently no plans to close or downgrade accounts. Eventually I suspect, to put all customers on a even keel, those with a greater number of Reward Current Accounts will be downgraded to a Standard Current Account. This is purely speculative, but makes sense, they would not go to the extreme of closing an entire account.Anything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.0 -
The only real solution is to budget better and avoid going overdrawn. If you do so inadvertantly for a few days the new Halifax charging model will not clobber you. Inevitably if the OFT is going to limit the very large charges that used to be levied on unathorised overdrafts the banks will increase charges elsewhere. The same happened when credit card charges were reduced. In the short-term you can move to a bank like Alliance and Leicester and get low overdraft charges (and poor customer service). But in the end all banks are likely to follow HBOS, RBS etc. Those who cannot run their current accounts without going overdrawn are likely to be faced with higher interest rates and as many small charges as the banks can get past the OFT.0
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I visited my local Halifax Branch yesterday to clarify the changes to my High Interest Current Account. These are the facts:
1. No interest will be paid on credit balances
2. If you use an O/d facility and you go into overdraft for any amount - (even 1p) you will be charged £1.00 per day up to £2500 and £2 per day over £2500.
3. If you use an unarranged overdraft you will be charged £5 per day.
These points are already clearly set out in the guide.It is therefore most important that one checks ones bank statements frequently to ensure that one does not drift into a minor overdraft.
Or check your account using Online and Telephone Banking (available 24/7); or check in branch or at an ATM. If you have a Reward Current Account you can also sign up to a free text alert service which notifies you if you stray into an unarranged overdraft.One is buffered to a certain extent by the £5 paid monthly into a 'Rewards' account, but it will be very quickly eaten away.
The best thing to do is change banks!!!
This is poor advice, you have to evaluate individually how these changes will effect you. For those who do not use an overdraft, and fund £1000 or more in calender month, can benefit from the Reward Current Account greatly by simply upgrading. As the guide also explains, those who use large arranged overdrafts constantly may find the difference between debit interest and daily fees negligible (or could even pay less). Also, those who with poor money management, and historically incur large charges will benefit from lower more clear-cut unarranged daily fees (£5), as opposed to a minimum of £35 and £28 charge (and also the fact there is no charge for bouncing a payment).
Best thing for you may be to move banks, but people need to make an informed decision based on how the changes will effect them. This may involve moving banks, however the overdraft will need to be repaid anyways, so the once negative change, becomes a positive, as they have cleared a debt.Anything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.0 -
2. If you use an O/d facility and you go into overdraft for any amount - (even 1p) you will be charged £1.00 per day up to £2500 and £2 per day over £2500.
This is incorrect - there is a £10 fee-free buffer.In my view HBOS have not introduced these measures to simplify the management of overdraft fees but to swell its coffers at the cost of the unwary particularly those that do not have the facility of the internet to hand. These include the most vunerable of our society - the aged and the poor.
I think it's quite clear why HBOS have introduced these - because of the ongoing saga of whether bank charges are fair or not, and people complaining because they 'weren't aware' of the potential charges. You surely agree that it's much simpler than it was before.0
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